Health-care Philosophy Goes On Trial

It's a contract dispute that has turned into a showcase for warring health-care philosophies.

A civil trial over ownership of South Seminole Hospital in Longwood begins today in U.S. District Court in Orlando. Federal Judge G. Kendall Sharp will preside.

The fight between Orlando Regional Healthcare System and Columbia/HCA Healthcare Corp. is a battle beyond the scope of who gets to own the 206-bed hospital.

In pretrial arguments, the two sides have trumpeted the differences in their businesses. Orlando Regional is a Central Florida-owned, six-hospital nonprofit network. Columbia is a 349-hospital, investor-owned company based in Nashville, Tenn.

The two companies became accidental partners on Oct. 1, 1994, when Columbia agreed to merge with Healthtrust Inc., a Nashville-based chain. Orlando Regional and Healthtrust had a joint partnership in South Seminole Hospital.

The Federal Trade Commission said Orlando Regional and Columbia - Central Florida competitors - couldn't be partners and asked them to dissolve the relationship.

Neither side could come to terms. Orlando Regional sued, saying its contract with Healthtrust gave them the first option to buy out the hospital should Healthtrust's ownership change. Columbia disagreed, challenging Orlando Regional's interpretation of the contract.

The dispute quickly escalated to an argument over the value of investor-owned health care vs. the nonprofit style.

Expect Columbia to attack Orlando Regional's tax exempt status and argue that there is no difference between the two companies in terms of guiding financial principles: They both seek to make money by providing a value in health care.

Expect Orlando Regional to stress its local roots and attempt to portray Columbia as unresponsive to community concerns such as care of the uninsured and indigent population.